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    Managerial Economics and Business Strategy Study Set 1
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    Exam 3: Quantitative Demand Analysis
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    Suppose the Demand Function Is Given by Q<sub>x</sub><sup>d</sup> = 10P<sub>x</sub><sup>0
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Suppose the Demand Function Is Given by Qxd = 10Px0

Question 78

Question 78

Multiple Choice

Suppose the demand function is given by Qxd = 10Px0.9 Py0.5 M0.22 H.Then the cross-price elasticity between goods x and y is:


A) 0.9.
B) 0.5.
C) 0.22.
D) −0.5.

Correct Answer:

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